Currently Urea market price

On March 21, over the weekend domestic ureaprices continue to rise, be drove by the downstream of agricultural andindustrial composite fertilizer pick up speed, East China and the downstreammarket of North China supply appeared nervous state, manufacturers sell lessand increase the price. The Shandong factory price rises up to RMB50 per ton,beside RUIXING and LUNAN production is abnormal, and it is because of LINYIcompound fertilizer enterprises centralized procurement pull up the price. Itis reported from the port the export FOB price for $210 / ton, with thedomestic price largely distance, and due to the domestic urea prices risingrapidly during the weekend, part of the port inventory have recycling program,is watching. While some analysts think urea prices rise factors is still due tothe Electricity price hike in April. Bearish short-term export situation,traders offer low, gate in stagnation,domestic price may continue to rise.

The main reason as below:

First:

High nitrogen fertilizer productioninto the hot season, compound fertilizer factory operating rate reboundedsignificantly, and plywood factory demand also increase than the previous,increased industrial demand, but prices of industrial lower than those used inagriculture, control of price caused the lack of stock, increase the highturnover.

Second:

Long term low price sales, to themarket too much repression, the same manufacturers are, boost market confidence through price increases.

Third:

International market is notoptimistic, India tender repeatedly postponed, to the late market potential,especially the export quantity significantly reduced in February to March.